Recent News about Coca-Cola:
Coca-Cola (KO) catches an upgrade
from Credit Agricole to Outperform from Underperform. The stock has
been a noticeable laggard during the bull run of 2013.
Coca-Cola has always been a defensive stock with steady dividend payout rising by 7% annually for the past. It also happens to be my favourite stock, which i have been waiting patiently the past 3 years for an opportunity to get in. Recent stock split makes it cheaper for us small retail investors where price was adjusted from $80 to $40/share. Also KO has not been performing well in the past few months. I suspect this is due to people taking profit year end and moving into riskier assets like Bank Of America, JP Morgan and Goldman Sachs. (Which have all risen significantly, I personally took 40% profit from GS @ my set TP: $155)
Back to Coca-cola, the stock price has been consolidating at around $37-38. To me, it looks like a great opportunity to pick this stock up @ current price below $39 with a target price $55. However, for me actually, this stock would fall under Warren Buffett scheme of buy and hold. Keep in mind that coca-cola has 42.8% market share, its a $74billion dollar brand, sells 1.7 billion servings per day. If they raise the price of each serving by 10 cents, they would be earning $170 million profit/day.
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